November 20, (THEWILL) — Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has defended the new Capital Gains Tax (CGT) regime, arguing that it will make Nigeria’s capital market more competitive and investor-friendly.
Speaking at a virtual lecture hosted by the Capital Market Academics of Nigeria, Oyedele stated that, despite misconceptions about the CGT rate, it remains relatively low compared to other taxes, such as Companies Income Tax (CIT) and VAT.
According to Oyedele, data from the Federal Inland Revenue Service shows that CGT collections between 2014 and 2024 contributed less than one percent of total CIT and VAT revenues, a small share given the scale of other taxes.
Under the proposed reform, the CIT rate is set to drop from 30% to 25%, which, Oyedele argues, will boost company profitability and drive market valuation higher, potentially more than offsetting any additional CGT revenue.
Key investor-friendly features of the new CGT framework include:
Exemptions for retail investors, pension funds, REITs, and reorganisations.
Deduction of capital losses and other costs, such as transaction fees.
Elimination of withholding tax on bonus shares.
Stamp duty exemption on documents related to share transfers.
Harmonisation of specific levies, including those from digital regulation (e.g., NITDA) and industrial agencies.
Oyedele also stated that the reforms will curb excessive fees imposed by government agencies, creating a more level playing field.
On the issue of perception, both Oyedele and Umaru Kwairanga, Chairman of the Nigerian Exchange Group (NGX), stressed that misunderstandings about the policy risk destabilising markets. Kwairanga warned that flawed perceptions can have very real economic consequences.
Other stakeholders have raised concerns. Economist Professor Sheriffdeen Tella warned that taxing private bonds under the new CGT regime could push investors toward government debt instead. Meanwhile, former FIRS Chairman Muhammad Nami called for increased engagement with investors, particularly to clarify policy mechanics and build confidence.
Oyedele emphasised that the reform is not primarily about raising revenue, but about making Nigeria’s tax system fairer, aligning it with global norms, and promoting long-term investment and stability.
Ogochukwu Onwaeze
